SMIC Reports 2023 Fourth Quarter Results

Shanghai, China – February 6, 2024 – Semiconductor Manufacturing International Corporation (SEHK: 00981; SSE STAR MARKET: 688981) (“SMIC”, the “Company” or “we”), one of the leading semiconductor foundries in the world, today announced its consolidated results of operations for the three months ended December 31, 2023.

Fourth Quarter 2023 Highlights

• Revenue was $1,678.3million in 4Q23, compared to $1,620.6 million in 3Q23, and $1,621.3 million in 4Q22.
• Gross profit was $275.0million in 4Q23, compared to $321.6 million in 3Q23, and $518.7 million in 4Q22.
• Gross margin was 16.4% in 4Q23, compared to 19.8% in 3Q23 and 32.0% in 4Q22.
• Unaudited revenue was $6,321.6 million in 2023, compared to $7,273.3 million in 2022.
• Unaudited profit attributable to owners of the Company was $902.5 million in 2023, a decrease of 50.4% from $1,817.9 million in 2022. The main reasons were: over the past year, the semiconductor industry was at the bottom of the cycle. Demand in the global market was weak. Industry inventories were in high level, with slowing down of de-stocking. The competition within the industry was fierce. As a result, the Group’s average capacity utilization rate declined, wafer shipment decreased and product mix changed. In addition, the Group was in high investment period, and depreciation increased accordingly compared with 2022. The above factors together impacted the Group’s financial performance in 2023.

The following statements are forward looking statements based on current expectations and involved risks and uncertainties.

FIRST Quarter 2024 Guidance

The Company expects:

• Revenue to be flat to up 2% QoQ.
• Gross margin to range from 9% to 11%.

The Management Comments

The fourth quarter revenue increased by 3.6% sequentially to $1,678.3 million, slightly beat the guidance; gross margin was 16.4%, in line with the guidance.

The unaudited revenue in 2023 was $6.32 billion, down 13% year-over-year; gross margin was 19.3%, basically in line with the Company’s guidance provided in the beginning of 2023. Monthly capacity was 806 thousand 8-inch equivalent wafers by the end of the year, and annualized capacity utilization rate was 75%.

The revenue for the first quarter of 2024 is expected to be flat to up 2% sequentially, and the gross margin is expected to be in the range of 9% to 11%.

Based on the premise that there are no significant changes in the external environment, the Company's guidance for the year 2024 is:

• The revenue growth is expected to be not less than industry average in the same markets and around mid-single-digit percentage year-over-year.
• The capital expenditure maintains roughly flat compared to 2023.

Conference Call / Webcast Announcement

Date: Wednesday, February 7, 2024

Time: 8:30 A.M. - 9:30 A.M.

WEBCAST

The call will be webcast live at:

https://edge.media-server.com/mmc/p/z6jyxkgy

CONFERENCE CALL

Please register in advance for the conference call at:

https://register.vevent.com/register/BIabe3972cdbb8470abeec8626c567efbb

REPLAY

Recording will be available 1 hour after the event and it will be archived for 12 months.

https://www.smics.com/en/site/company_financialSummary

About SMIC

Semiconductor Manufacturing International Corporation (SEHK: 00981; SSE STAR MARKET: 688981) is one of the leading foundries in the world and is the front runner in manufacturing capability, manufacturing scale, and comprehensive service in the Chinese Mainland. SMIC Group provides semiconductor foundry and technology services to global customers on 8-inch and 12-inch wafers. Headquartered in Shanghai, China, SMIC Group has an international manufacturing and service base, with 8-inch and 12-inch wafer fabrication facilities in Shanghai, Beijing, Tianjin and Shenzhen. SMIC Group also has marketing and customer service offices in the U.S., Europe, Japan, and Taiwan, China, and a representative office in Hong Kong, China.

For more information, please visit www.smics.com.

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